Interview: Housam Raydan, AirArabia

Interview with Mr. Housam Raydam, Corporate Comms. Mgr of AirArabia

AIR: Among all the economic turmoil, AirArabia performs very well, what is your secret?

H.R: Air Arabia’s success is based on a simple promise of value-for-money travel options. Drawing upon successful strategies adopted by LCCs across the world, Air Arabia’s dynamic business model is well positioned to adapt to changing business environment.

The low-cost model, which Air Arabia introduced to the region, is uniquely attractive in these challenging economic times. According to a recent report by the Centre for Asia Pacific Aviation (CAPA), low-cost carriers (LCCs) will see increased demand in terms of both traffic growth and earnings this year compared to traditional airlines. The low-cost model is founded upon the principle of adaptability to changing market conditions. In that sense, we are uniquely positioned to react rapidly to shifting patterns in demand.

AIR: What do you think about the increasing low cost competition in Middle East?

H.R: Since Air Arabia introduced the low-cost model in 2003, we have anticipated other carriers to follow our successful business model and since then, we have many new LCCs being established. Air Arabia, however, has maintained its leadership position, and continues to post strong financial performance. The carrier remains focused on offering compelling value propositions for customers through competitive fares and services.

AIR: You recently launch Air Arabia Maroc, your Moroccan subsidiary, how is it performing?

H.R: Air Arabia Maroc began operations in May this year, with the inaugural flight to Stansed Airport in London, United Kingdom. The carrier has now grown to 11 destinations across Europe and North Africa, offering comfort, reliability, and value for money air travel from and into the Moroccan city of Casablanca. The airline’s low-cost model is proving very attractive and we have seen encouraging response.

AIR: Do you plan to launch further subsidiaries, and do you have any plans for a long haul subsidiary?

H.R: Air Arabia regularly monitors passenger traffic on all its sectors, and actively looks for new routes to expand its strong network. Air Arabia continuously explores business opportunities and may consider establishing a subsidiary if we have a strong business case for it.
We remain focused on the LCC model and we don’t have any existing plans for long haul subsidiaries.

AIR: RyanAir and Southwest are often considered as models for newer carriers, have you been following any of them? If not, what is AirArabia modelled after?

H.R: As mentioned earlier, Air Arabia draws upon successful strategies adopted by LCCs across the world and had developed a dynamic business model of its own that is well positioned to meet the regions expectations and service requirements.

AIR: Africa is still an unspoilt market, how is Air Arabia’s approach to Africa?

H.R: Air Arabia recognises the immense opportunities offered by Africa. The carrier already flies to Egypt and Sudan in North Africa. The new hub in Morocco will enable Air Arabia to further expand in the African continent.

AIR: In Europe, low fare carriers have the possibility of operating into secondary lower costing airports, but such options do not exist in this part of the world – how do you deal with this ?

H.R: Air Arabia is committed to optimal utilisation of available resources leading to high operational efficiencies. For the fourth consecutive year, Air Arabia has been recognised by Airbus for achieving the highest level of operational excellence.

Our cost control strategy and high resource utilization remains the balance through which we can achieve good results and at the same time, offer best rates in the market.

AIR: How do you make sure that you always select the right person when you hire someone?

H.R: Our people are our greatest asset. We always make sure that our employees are their to grow with the airline. In fact, most of our staff members are shareholders – they own a stake in the airline.

Thank you Mr. Raydan for your participation.

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